What are the characteristics of a bond?

Whenever I think of a bond, I always think of it as the opposite of a loan where the government will give me a certificate stating the interest rate and the date when the bond will mature. I want to know if my interpretations are correct and I also want to know the actual characteristics of bonds and how they actually work.

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    Your interpretations are correct but we can look deeper into its characteristics. A bond has a face value which is the amount the bond will be worth at maturity and the amount the bond issuer uses when calculating interest payments. A bond has a coupon rate which is similar to interest rates. A bond shouls always have a maturity date which is self explanatory. Probobly the most important characteristic is the issue price which is the original price the issuer sells the bond.

    2020.03.24 15:44

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